The claim settlement process of a vehicle insurance plan can be a daunting affair sometimes. Unlike life, home, or health insurance, where the proof of crisis or damage to the property due to a natural calamity has self-explanatory evidence, the same cannot be said about damage to vehicles.
For instance, the driver of a car or bike involved in an accident can shift the blame to the other party or refuse to take accountability. Thus, there remains a possibility of confusion. Consequently, negotiating a fair claim settlement amount may turn out to be a critical process.
Know your policy
To mitigate such uncertainties and their consequences, it is imperative to know all that you can claim in your settlement application. For that, you must read the policy outline thoroughly and take note of the inclusions and exclusions of your insurance policy.
Inclusions
Every vehicle insurance policy comes with certain inclusions. Make sure you are aware of them. Your claim will be taken forward, processed and accepted if and only if, the reason for the claim is covered under the inclusions. Comprehensive vehicle insurance covers third-party liabilities, total loss or damage to the car or bike due to natural calamity, personal accident etc.
Exclusions
Exclusions are the conditions or instances that are not included in the insurance policy. If you raise a claim for a cause that is excluded from the policy coverage, your claim will be rejected. Usually, instances such as drunk driving, driving without a licence, an invalid car insurance policy, or loss due to wear and tear are not covered by vehicle insurance.
Why do insurers check car insurance claim history
Insurers check your claim history primarily to assess risk. A history of multiple claims might suggest a higher likelihood of future claims, which can affect:
- Premium rates: The Higher the number of claims, the greater the premium.
- Eligibility for NCB: NCB in car insurance can earn you up to a 50% discount on your premium through NCB.
- Policy renewals or switching to another insurer: A claim-heavy history can lead to rejections or fewer coverage options.
Additionally, when you're buying a used car, it’s wise to check its insurance claim history through the former owner’s insurer or through services like the Insurance Information Bureau (IIB) to avoid inheriting unresolved issues.
Tips for smooth claim settlement
Given below are some tips to ensure that you have a comprehensive understanding of factors that affect the claim settlement on your vehicle
You should try maintaining the details of all small and large accidents or brush-offs suffered by your vehicle, in chronological order. The record should carry medical bills if there are any, police reports, and other related documents.
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Comprehensive demand letter
When you make a claim, in your application for the same, break down all the elements that you took into consideration and how you arrived at the amount that you claiming.
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Check the claim settlement ratio
One of the major indicators of the credibility of insurance companies is their claim settlement ratio (CSR). The higher the claim settlement ratio, the higher chances of your claim getting settled smoothly. Before you buy insurance, check the IRDA Claim Settlement Ratio 2022 list.
The claim process should be easy. At the time of claim settlement, you do not want to go through a tedious and time-consuming process. You can contact the insurance company directly to know about their claim settlement process.
Conclusion
While purchasing car insurance online, do not forget to check the claim settlement ratio of the insurance company. Choose a financially healthy company such as ICICI Lombard. You can check its credibility and track record by checking the ICICI Lombard Claim Settlement Ratio from IRDA’s annual report.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the topic featured in the article. It is advised to verify the currency and relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.